BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 41XX|
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THIRD READING
Bill No: SB 41XX
Author: Speier (D)
Amended: 7/20/01
Vote: 27 - Urgency
SENATE ENERGY, U.&C. COMMITTEE : 6-2, 5/24/01
AYES: Morrow, Alarcon, Battin, Poochigian, Speier, Vincent
NOES: Bowen, Dunn
SENATE APPROPRIATIONS COMMITTEE : 10-1, 7/9/01
AYES: Alpert, Battin, Burton, Johannessen, Johnson,
Karnette, Murray, Perata, Poochigian, Speier
NOES: Bowen
SUBJECT : Public Utilities Commission: gas and
electricity: baseline
quantities
SOURCE : Author
DIGEST : This bill requires the Public Utilities
Commission to establish a standard adjustment relative to
baseline quantities and requires each electrical and gas
corporation to adjust the quantities for a residential
customer whose household includes the presence of a
dependent child under the age of 18 years, regardless of
the number of children.
ANALYSIS : Current law requires the California Public
Utilities Commission (CPUC) to establish a baseline
quantity of electricity and gas which is necessary to
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supply a significant portion of the reasonable energy needs
of the "average residential customer." All residential
customers receive a baseline allotment - an allotment that
isn't based on a person's income level or individual family
size. The per-kilowatt-hour (kwh) cost of energy under the
baseline allowance is less than the per-kwh cost of energy
in excess of the baseline allotment. In determining the
baseline quantities, the CPUC is required to take into
account differentials in energy needs between all-electric
customers and customers supplied with both electricity and
natural gas. The CPUC is also required to account for
differentials in energy use by climatic zone and season.
Current law defines "baseline quantity" as the amount of
electricity or natural gas for residential customers based
on 50%-60% of average residential consumption, except that
for all-electric customers the baseline quantity shall be
from 60%-70% of average residential consumption during the
winter heating season. Current law requires the CPUC to
review and revise baseline quantities as average
consumption patterns change in order to maintain the
above-noted ratios. Current law requires a customer
dependent on life-support equipment to be given an
additional allocation of baseline energy.
AB 1X (Keeley) Chapter 4, Statutes of 2001, barred the CPUC
from raising rates for the first 130% of baseline
residential usage.
The CPUC is planning on opening an investigation into
baseline allowances this month to look at, among other
things, whether the baseline quantities need to be revised
and whether other criteria should be used in determining
baseline allowances.
History . The notion of a baseline rate for electricity and
natural gas customers was first created in 1975 and was
known at the time as a "lifeline rate." The original
statute, which has been amended numerous times over the
years, required the CPUC to designate a lifeline volume of
gas and a lifeline quantity of electricity necessary to
supply the "minimum energy needs of the average residential
user for the following end uses: space and water heating,
lighting, cooking and food refrigerating . . ."
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In 1982, the "lifeline rate" was replaced with "baseline
rate" to provide for a basic quantity of service priced at
a discount from the system average rate specified in the
statute.
The current structure of defining the "baseline quantity"
as the amount of electricity or natural gas for residential
customers based on 50%-60% of average residential
consumption, except that for all-electric customers the
baseline quantity shall be from 60%-70% of average
residential consumption during the winter heating season,
was added to the codes in late 1980's or early 1990's.
The Senate Energy, Utilities and Communications Committee
states, "the author envisions this additional baseline
allowance will be modeled after the existing medical
baseline allowance, wherein a customer obtains an
additional increment of baseline usage on top of the
standard baseline amount for that customer's particular
circumstance. The additional allotment wouldn't vary by
climate zone or time of year."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
DLW:sl 7/20/01 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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